Solution 1:

Here are three options you can try (found here):

1) Are you using Skype? If you are, remove it completely, install Office and then install Skype again. This usually fixes the problem.

2A) Open the parent folder manually that the installer cannot find. When you get the error, use Windows Explorer to find the parent folder of the folder that contains the missing file. Run the Office install again. Repeat this step if you get any more files not found. Leave them open in separate Windows Explorer windows until Office is installed.

2B) Open the files manually that the installer cannot find. When you get the error, use Windows Explorer to find the file and open it manually. Leave it open and run the Office install again. Repeat this step if you get any more files not found. Leave them open until Office is installed.

3) Edit the registry. This is the last option and care should be taken not to break your machine. I take no responsibility for any changes you make to your computer (either in this step or the previous ones). To edit the registry click on START, then RUN ... In the box that appears type REGEDIT and click OK. Browse down the following path:

HKEY_LOCAL_MACHINE > SOFTWARE > MICROSOFT > OFFICE

Delete the keys (items) you find in the OFFICE folder but not the sub-folders. This removes traces of previous installs to avoid possible conflicts when installing the new version of Office.

Then browse into:

HKEY_LOCAL_MACHINE > SOFTWARE > MICROSOFT > OFFICE > DELIVERY > SOURCEENGINE > DOWNLOADS

Delete the keys (items) you find here.